Sport Betting Industry Wants To Protect Itself

Sport sports betting industry looks to protect itself

16 September 2010

By Bill Wilson

Business reporter, BBC News

sports betting on sport is substantial organization.

Sport England estimates the worth of spending on sport-related sports betting in England grew from ₤ 1.7 bn in 1985 to ₤ 2.8 bn in 2008.

And that figure is likely to have grown further, with an estimated ₤ 1bn bet on the World Cup alone in the UK this summer season.

Meanwhile, German research company Sport & Markt approximates the general worldwide sports betting market will be worth 263bn euros (₤ 220bn) by 2012, with much of that driven by web and sports betting gambling.

But when the integrity of events are struck the gaming market suffers, and earnings are put under threat if clients can not bet with confidence.

And there can have been few higher-profile sport wagering stories than those affecting cricket and snooker this year.

High-profile

As Sport & Markt's Gareth Moore observes: "Everyone speak about the sports betting gambling market now.

"Not just is it a considerable market in world service, it is one that is now on the front pages of papers."

Four Pakistan cricketers have been questioned by authorities over spot-fixing accusations connecting to a test against England at Lord's last month.

Three of these players have actually stated they will likewise challenge the corruption charges installed versus the trio by the sport governing body the International Cricket Council.

Meanwhile, three-times snooker world champion John Higgins was cleared of match-fixing allegations, however was prohibited last week for six months for stopping working to report the unlawful approach to him to throw frames.

There are also two other continuing investigations - unrelated to Mr Higgins - into snooker.

'Honest'

David O'Reilly is legal counsel for Betfair, one of the UK's most significant online sporting exchanges.

"If the sport is perceived as truthful, straight and reasonable that benefits sports betting companies because people will spend money wagering with self-confidence," he says.

"If you take the Pakistan accusations, although unrelated to the UK controlled betting market ... it is not truly a favorable story for wagering in the UK.

"That is since the perception is that 'cricket is now something we may need to take care about'."

'Education'

So what can be done to avoid future scandals?

According to professionals at a World sports betting Law Report conference into sports betting gambling, the focus needs to be on sportspersons and sportswomen.

As Simon Taylor of the Professional Players' Federation explains: "The only people who can repair a match are the rivals or the referee."

His organisation represents males and females in 15 sports betting in the UK, being an umbrella organisation for all player organisations, such as the Professional Footballers' Association.

He believes that it is inadequate to simply have deterrents, sanctions and disciplinary treatments, but that the way to take on potential problems around gamers is also through education.

Mr Taylor says rules require to be discussed plainly to gamers with clear examples, and by people they appreciate.

"Through educating gamers about sports betting wagering you reinforce stability and that is in everyone's interest," he includes.

"If players are harder to corrupt then sport will be harder to corrupt."

'Brand damage'

Matt Johnson, head of regulatory legal advice at the Football Association, concurs.

"Prevention is much better than cure, and we also make a point of telling gamers 'you are going to be caught'."

"It is vital that sport is straight, and is seen to be directly," he adds.

"If it loses that then individuals don't wish to wager, that is not in gaming firms' interests, and it is not in our interests."

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He said that when an excellent track record was lost, the damage to a sport was "enormous".

FA rules mean gamers are not permitted to bet on a competitors in which they are included.

Mr Johnson states gamers have actually to be seen not to be cashing in on any inside knowledge, which he says might cause "brand damage" to football and its competitors.

So, even a 2nd Division player knocked out of the FA Cup in the fall can not bet on a Manchester United v Chelsea cup last the following spring.

"We need to overcome to players the reputational threat to the video game," he says. "Once confidence has been damaged it is tough to get it back - mud sticks."

'Overwhelmingly legal'

If this represents the "carrot" approach, then maybe Nick Tofiluk, director of guideline at the Gambling Commission, represents the "stick".

The Gambling Commission was established under the Gambling Act 2005 to regulate commercial gaming in Great Britain.

An ex-chief constable of West Midlands police, Mr Tofiluk has responsibility for policing all wagering in the UK apart from spread sports betting, which is the remit of the FSA.

"The frustrating majority of sports betting taking location through UK operators is legal and reasonable," he states.

"But for some there is the temptation to ... corruptly hinder the result of a sporting occasion.

"Such unfaithful has the possible to weaken the integrity of a sport, and it also damages the commercial interests of sports betting bodies and sports betting."

The commission has developed an in-house Sports Betting Intelligence Unit to get and distribute details to sporting authorities, sports betting firms and policing authorities.

"Since 2007 we have actually experienced a significant insight into world of corrupt sports betting," he states.

"We will signal sports betting of our issues, to assist avoid or reduce [prohibited] activity"

In May 2010, the commission likewise presented a personal telephone hotline for those with info or suspicions.

'Vulnerabilities'

But in a two-and-a-half year period there has been just one criminal prosecution, a 24-year-old man who was cautioned for cheating in relation to greyhound racing.

However, Mr Tofiluk says there are still eight continuous examinations, and that much useful details has actually likewise been passed to sports betting authorities.

He said that where an investigation by a sport governing body was quicker, and more expense reliable, then the commission would consider terminating a criminal investigation "in favour of letting sports betting governing bodies take the lead".

Meanwhile, he says many of those wanting to cheat the sports betting market were knowledgeable about sports betting and sporting individuals, and about sports betting operations and the motion of money.

"They look for the vulnerabilities of these to help in their enterprises."